BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 847| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ UNFINISHED BUSINESS Bill No: SB 847 Author: Steinberg (D) Amended: 8/26/10 Vote: 27 - Urgency SENATE FLOOR : Not relevant ASSEMBLY FLOOR : 77-1, 8/30/10 - See last page for vote SUBJECT : Education finance SOURCE : Author DIGEST : This bill appropriates $1,201,534,585 from the Federal Trust Fund to the Office of Planning and Research for the 2010-11 fiscal year upon notification to the state of a funding award pursuant to the federal Education Jobs and Medicaid Assistance Act of 2010.. Assembly Amendments delete the Senate version of the bill relating to the Budget Act of 2010 and replaced it with the language relating to the appropriation of $1,201,534,585 from the Federal Trust Fund pursuant to the federal Education Jobs and Medical Assistance Act of 2010. ANALYSIS : Existing law requires expenditure authority to be granted, through an appropriation in the Budget Act, a continuous statutory appropriation or through an appropriation in special legislation, before a state agency or department is able to expend or allocate funds to other CONTINUED SB 847 Page 2 entities, such as local education agencies. This bill: 1.Creates an urgency statute that appropriates $1,201,534,585 from the Federal Trust Fund to the Office of Planning and Research for the 2010-11 fiscal year upon notification to the state of a funding award pursuant to the federal Education Jobs and Medicaid Assistance Act of 2010 (Education Jobs Act). 2.Requires that $1,201,406,585 be transferred to the California Department of Education for purposes of implementing the federal Education Jobs Act, and requires those funds to be expended as follows: A. $1,199,906,585 to be allocated to local educational agencies on the basis of an equal amount per unit of 2010-11 Second Principal Apportionment average daily attendance (P-2 ADA). Requires a preliminary allocation equal to 90% of the estimated final allocation, with that estimate based on 2009-10 P-2 ADA, to be allocated no later than 14 days following the enactment of this bill or the notification of an award for federal funding, whichever is later. B. $1.5 million to be available to the CDE for administrative purposes related to the allocation of Education Jobs Act funds to LEAs. 3.Makes $128,000 available to the OPR for the purpose of providing oversight of funds allocated to local educational agencies. 4. Clarifies that local educational agencies are required to use allocated Education Jobs Act funds in a manner consistent with the requirements of the Education Jobs Act and any related federal regulations or guidance, and requires the funds to be used only for compensation, benefits and other expenses, including support services, necessary to retain existing employees, to recall or rehire former employees, and to hire new employees, where those employees provide school-level educational and CONTINUED SB 847 Page 3 related services. 5.Authorizes any local educational agency that receives an allocation of Education Jobs Act funds and has funds remaining after fiscal year 2010-2011, to use those remaining funds through September 30, 2012, for the purposes specified. Comments On August 10, 2010, President Obama signed HR 1586 into law, enacting the federal Education Jobs and Medicaid Assistance Act of 2010 (the Jobs Act) which includes $16.1 billion in expanded Federal Medical Assistance Percentage (FMAP) funding for the states and $10 billion in education funding provided to the states to support an estimated 160,000 education jobs nationwide. The Jobs Act requires that the education funds provided to the states be spent by local education agencies to prevent teacher layoffs in the 2010-11 school year, that the funding be allocated to local education agencies based on a state's funding formula specified in the state's State Fiscal Stabilization Fund application or each districts' relative share of federal Title I funds, that states show that they have met the maintenance of effort provisions, and that this funding not be used to supplant state education funding or provide a funding service. The $10 billion in education funding will be allocated to the state's proportional to state population; California will receive an allocation over $1.2 billion. The U.S. Department of Education (USDOE) estimates that this funding will save approximately 16,500 teacher jobs in California; an estimated 22,000 teachers received pink slips in the spring of this year. According to United States Secretary of Education Arne Duncan, "With the support of the jobs bill, these educators will be helping our children learn instead of looking for work. This is the right thing to do for our children, for our teachers, and for our economy." In order to ensure that states receive funding as quickly as possible, USDOE is streamlining the application process so that states can submit applications shortly. USDOE will award funding to states within two weeks of their CONTINUED SB 847 Page 4 submission of an approvable application. The purpose of this bill is to appropriate these expected federal funds and to provide the CDE with the expenditure authority necessary for it to allocate those funds, when received by the state, to local education agencies at the earliest time possible. According to USDOE, it will award funding to states within two weeks of a state's submission of an approvable application. The purpose of this bill is to appropriate these expected federal funds and to provide the appropriate state entity with the expenditure authority necessary for it to allocate those funds, when received by the state, to local educational agencies at the earliest time possible. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No SUPPORT : (Verified 8/30/10) California Federation of Teachers California School Employees Association California Teachers Association League of Women Voters of California Los Angeles Unified School District Santa Ana Unified School District Small School Districts Association United Teachers of Los Angeles ARGUMENTS IN SUPPORT : According to the author's office, this bill is needed to ensure that schools receive the $1.2 billion in federal Education Jobs Fund dollars as soon as possible and can use them for their intended purpose - to save or create education jobs in the coming 2010-11 school year. The author's office states that this bill is a stand-alone bill and is not connected to the Budget Act or the Proposition 98 funding level provided to K-12 schools. ASSEMBLY FLOOR : AYES: Adams, Ammiano, Arambula, Bass, Beall, Bill Berryhill, Tom Berryhill, Block, Blumenfield, Bradford, Brownley, Buchanan, Caballero, Charles Calderon, Carter, Chesbro, Conway, Cook, Coto, Davis, De La Torre, De Leon, CONTINUED SB 847 Page 5 DeVore, Eng, Evans, Feuer, Fletcher, Fong, Fuentes, Fuller, Furutani, Gaines, Galgiani, Garrick, Gatto, Gilmore, Hagman, Hall, Harkey, Hayashi, Hernandez, Hill, Huber, Huffman, Jeffries, Jones, Knight, Lieu, Logue, Bonnie Lowenthal, Ma, Mendoza, Miller, Monning, Nava, Nestande, Niello, Nielsen, Norby, V. Manuel Perez, Portantino, Ruskin, Salas, Saldana, Silva, Skinner, Smyth, Solorio, Audra Strickland, Swanson, Torlakson, Torres, Torrico, Tran, Villines, Yamada, John A. Perez NOES: Anderson NO VOTE RECORDED: Vacancy, Vacancy CPM:cm 8/31/10 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED